Newsom Signs Newsroom Subsidy Bill, Warning of Trump’s ‘Assault on the Free Press’
The law offers refundable credits of up to $20,000 per journalist and an added $15,000 for each new hire.
- On Wednesday, California Governor Gavin Newsom signed Assembly Bill 2222, the Community NEWS Act, establishing refundable employment tax credits to help state news organizations retain and hire journalists.
- This measure addresses a severe industry decline; California has lost more than 12,000 local journalists since 2002, and nearly 40% of U.S. newspapers have vanished over two decades.
- Beginning in 2027, the law provides $20,000 for each of the first five full-time journalists, $15,000 for each additional journalist, and a stackable $15,000 credit for new hires.
- While the California Chamber of Commerce opposed the bill, citing "unlimited fiscal liability to the state," Newsom argued the legislation ensures government accountability against attacks from President Donald Trump.
- Industry groups like SAG-AFTRA, representing 160,000 media employees, view the act as a model for states facing revenue losses from search and AI technology changes threatening local news viability.
24 Articles
24 Articles
AB 2222, the Community News Act, foresees more than $200 million in five years and credits to retain and hire local journalists
Cal Matters
Newsom signs first-in-the-nation law to bolster struggling local news organizations
Gov. Gavin Newsom approved a novel tax plan to keep California’s shrinking newsrooms afloat. It provides incentives for companies to hire journalists.
Napa Valley Register
The Mercury newsNewsom signs newsroom subsidy bill, warning of Trump’s ‘assault on the free press’
The measure, with credits valued at roughly $55 million over five years, is intended to slow the loss reporters and the closure of newspapers across California, particularly in small communities.
Governor Signs Ward’s Community NEWS Act
SACRAMENTO, CA — Governor Gavin Newsom signed Assembly Bill 2222, the Community NEWS Act, authored by Assemblymember Christopher M. Ward (D-San Diego), establishing a first-of-its-kind refundable employment tax credit to help California news organizations retain and hire journalists. Beginning in 2027, AB 2222 provides qualifying news organizations with credits of $20,000 per full-time journalist for […]
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